Professional Documents
Culture Documents
Kick, III
Nerissa D. Salayao
Rogelio N. Tagarino, Ph.D.
Charles G. Kick, III
Preliminary Draft
Abstract
© 1991 Nerisa D. Salayao, Rogelio N. Tagarino & Charles G. Kick, III
Study Background
This paper represents work undertaken by the lead author a s
part of a study of the capabilities of rural coastal communities
capabilities for resource management which focuses on seaweeds.
That study was funded by a one-year fellowship to Dr. Tagarino and Mr.
Kick from the Research and Training Program for Agricultural Policy
(RTPAP). RTPAP, a component of the Philippines' Department of
Agriculture's Accelerated Agricultural Productivity Program (AAPP), is
a joint effort of UPLB's Center for Policy and Development Studies
(CPDS) and College of Economics and Management (CEM).
© 1991 Nerisa D. Salayao, Rogelio N. Tagarino & Charles G. Kick, III
I. Introduction
A. Background Information
Seaweeds have been a noteworthy foreign exchange earning
product in the fishery sector coming after tuna and prawns In 1989,
___ mt of seaweed exports valued at P______ accounted for ___% of
the total fishery export value. Although there are ___ species
identified in Philippine waters, only two species, Eucheuma and Caulerpa
lentillifera, are farmed commercially for local and export markets.
Seaweed production is primarily done in Tawi-tawi, Cebu and a few
other provinces in the south.
Commercial farming of Eucheuma in the Philippines started in the
early 1970s and has undergone changes in two major areas. First,
production has shifted from simple bottom culture to more
sophisticated and well-managed support systems such as the floating
raft method, the fixed off-bottom method, and the monoline method.
Second, changes in organization and management included a shift from
highly organized "hacienda-type", or company, farms to individual
family farms (RAPA, 1986). Hence, recent production generally comes
from family farms living in small islands.
Culturing seaweeds in inter-tidal and sub-tidal zones is attractive
to coastal households. These households engage in this form of
coastal aquaculture because of the relatively higher cash income that
can be derived from this activity compared with small-scale fishing.
For instance, fishing incomes in Hingonatan, Bohol, averaged P21.60
($2.70)per day while seaweed farming incomes ranged from P43 00 -
P140.00 ($5.40 - $17.50) per day (Smith, 1980). Hollenbeck (1983)
estimated that there were about 20,000 people directly and indirectly
involved in the P300 million seaweed industry. Recent data (source,
date), however, indicated that there are some 350,800 farmers and
their families engaged in seaweed farming and primary processing.
Seaweed farming provides alternative and/or additional income to
fishermen, hence, coastal aquaculture generates income for coastal
populations without adding to the alleged over-exploitation of fishery
resources in the country.
From the economic aspects, commercial seaweed production in
the country has proved to have a comparative advantage over
developed, temperate countries and even other tropical countries.
This advantage is due to low local production costs and the availability
of planting materials either from the wild or from improved strains.
There is an abundance of labour in the country that suits the labour-
© 1991 Nerisa D. Salayao, Rogelio N. Tagarino & Charles G. Kick, III
submerged system also avoids having the plant touch the sea bottom,
thereby minimizing dirt, the weeds. The choice of a specific type of
submerged support system, however, depends on the sea bottom, its
type, substrate, the availability of material inputs in the area, and the
cost of the support system.
Conversely, floating support systems are recommended in areas
with fluctuating water levels, so that the plant could still get
substantial sunlight during high tides, while not being exposed above
the water during low tides. This system is also suited for areas with
stronger water movement because its flexibility means less pressure
on the plants and, thereby, fewer broken plants. Similarly, the grazing
of fishes, sea urchins and other aquatic animals could be minimized
through frequent movement of the support system holding the plants.
The choice of a specific type of floating support system would also
depend on the type of sea bottom, substrate, the availability and cost
of materials, etc.
© 1991 Nerisa D. Salayao, Rogelio N. Tagarino & Charles G. Kick, III
6
2. Long Line Recommended for areas with Propagules tied to 20m nylon lines whose
Floating usually high water level. The ends are attached to 5m poles supported by
System same environmental require- 1m anchor stakes. Five floats on line at 4m
ments as modified floating intervals. Lines 2m apart.
raft.
ADVANTAGES: Less labor and fewer poles
breakage especially when the long lines sag
due to heavy load of mature plants.
Table 2. Investment Items and Costs for the First Crop of Selected Seaweed Species by culture method, 1 ha farm.
Item Specification Unit Unit Monoline Method Raft Method Net Method
Price Qty Cost Qty Cost Qty Cost
Material Costs/Cash PHP PHP PHP PHP
Farmhouse & drying platform bamboo & nipa no 9000 1 9,000 1 9,000 1 9,000
Motorized banca 6-7 hp no 6000 1 6,000 1 6,000 1 6,000
Banca dugout no 500 1 500 1 500 1 500
Crowbars medium size pc 160 2 320 5 800 5 800
Sledgehammers medium size pc 140 2 280 5 700 5 700
Rattan baskets medium size pc 40 10 400 20 800 15 600
Round wood/bamboo 5-7cm dia. x 1.5m pc 2 1500 3,000 4000 8,000 0 0
Short stakes anchor, 1m long pc 1 100 100 400 400 3200 3,200
Nylon rope No. 6 (3mm) roll 80 50 4,000 260 20,800 20 1,600
Plastic straw (Softie brand) roll 40 30 1,200 80 3,200 72 2,880
Round wood for fence 5-7cm dia. x 5m pc 3.5 150 525 150 525 150 525
Fish net 20 lb test, 2" mesh meter 9 100 900 100 900 100 900
Fish net 100 lb test, 12" mesh meter 30 0 0 0 0 5000 150,000
Floats styrofoam, 2x3x4" pc 0.3 5880 1,764 3200 960 3200 960
Materials for boundaries bouys, chains, etc. lot 3000 1 3,000 1 3,000 1 3,000
Seeds (purchased) a) 60-120 grams FW/pc kg FW 2 3175 6,350 6000 12,000 6000 12,000
Seeds (purchased) b) 60-120 grams FW/pc kg FW 1.5 3175 4,763 6000 9,000 6000 9,000
Seeds (purchased) c) 60-120 grams FW/pc kg FW 0.5 3175 1,588 6000 3,000 6000 3,000
Fuel & oil for boat a) 3 l/day l/days 30 71 2,130 121 3,630 71 2,130
Fuel & oil for boat b) 3 l/day l/days 30 61 1,830 111 3,330 61 1,830
Fuel & oil for boat c) 3 l/day l/days 30 56 1,680 106 3,180 56.33 1,690
Material Costs/Non-Cash
Seeds for succeeding crops a) 60-120 grams FW/pc kg DW 15 397 5,955 2000 30,000 1296 19,440
Seeds for succeeding crops b) 60-120 grams FW/pc kg DW 10 397 3,970 2000 20,000 1296 12,960
Seeds for succeeding crops c) 60-120 grams FW/pc kg DW 4.5 397 1,787 2000 9,000 1296 5,832
Sub-Total/Materials a) 45,424 101,215 214,235
Sub-Total/Materials b) 41,552 87,915 204,455
Sub-Total/Materials c) 36,043 70,765 191,187
Labor costs/cash
Wages a) 4 fulltime workers manday 90 368 33,120 1040 93,600 368 33,120
Wages b) 4 fulltime workers manday 90 328 29,520 960 86,400 328 29,520
Wages c) 4 fulltime workers manday 90 308 27,720 840 75,600 308 27,720
Labor Costs/Non-Cash
Entrepreneurship a) 1 owner-operator manday 240 281 67,440 331 79,440 281 67,440
Entrepreneurship b) 1 owner-operator manday 240 271 65,040 321 77,040 271 65,040
Entrepreneurship c) 1 owner-operator manday 240 266 63,840 306 73,440 266 63,840
Sub-Total/Labour a) 100,560 173,040 100,560
Sub-Total/Labour b) 94,560 163,440 94,560
Sub-Total/Labour c) 91,560 149,040 91,560
Pages 7 8
© 1991 Nerisa D. Salayao, Rogelio N. Tagarino & Charles G. Kick, III
Other Costs/Cash
Concessionaire's annual fee appl'n & licence fee 70 1 70 1 70 1 70
Repair & replacement 40% of material cost 4428 1,771 3,176 10,324
Surveyors' professional fee 2 surveyors manday 500 24 12,000 24 12,000 24 12,000
Insurance 5 to 9 persons units 500 5 2,500 9 4,500 9 4,500
Miscellaneous expenses fares, fees, etc. lot 12500 1 12,500 1 12,500 1 12,500
Sub-total/Other Costs 28,841 32,246 39,394
Total Cash Costs (a) 101,430 197,061 267,309
Total Cash Costs (b) 95,943 186,561 260,409
Total Cash Costs (c) 90,818 169,611 252,469
Total Non-Cash Costs (a) 73,395 109,440 86,880
Total Non-Cash Costs (b) 69,010 97,040 78,000
Total Non-Cash Costs (c) 65,627 82,440 69,672
TOTAL COSTS (a) 174,825 306,501 354,189
TOTAL COSTS (b) 164,953 283,601 338,409
TOTAL COSTS (c) 156,444 252,051 322,141
a = refers to Eucheuma spinosum which grows slower than E. cottonii but cost higher.
b = refers to E. cottonii which is more popularly cultured and cheaper than spinosum.
c = refers to Sargassum sp. which is made into organic fertilizer.
Pages 7 8
© 1991 Nerisa D. Salayao, Rogelio N. Tagarino & Charles G. Kick, III
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Table 3. Schedule of Activities for Eucheuma culture (1 ha farm) Using Raft or 1" in the Support Systems in Sorsogon.
Pages 10 - 12
© 1991 Nerisa D. Salayao, Rogelio N. Tagarino & Charles G. Kick, III
Table 3. Schedule of Activities for Eucheuma culture (1 ha farm) Using Raft or 1" in the Support Systems in Sorsogon.
Pages 10 - 12
© 1991 Nerisa D. Salayao, Rogelio N. Tagarino & Charles G. Kick, III
Table 3. Schedule of Activities for Eucheuma culture (1 ha farm) Using Raft or 1" in the Support Systems in Sorsogon.
Pages 10 - 12
Table 4. Financial Analysis of Eucheuma spinosum, E. cottonii and Sargassum
Using Monoline Culture System, 1 ha. Farm.
Gross Value of Prod'n-GVP 8,930 26,791 62,512 45,000 135,000 315,000 29,250 87,750 204,750
Value of crops sold 7,144 21,433 50,010 36,000 108,000 252,000 23,400 70,200 163,800
Value of harvest for seeds 1,786 5,358 12,502 9,000 27,000 63,000 5,850 17,550 40,950
COSTS OF PRODUCTION
Cash Costs a) 101,430 145,972 170,355 197,061 244,414 205,889 267,309 328,956 520,921
(mat'ls, paid labor and b) 95,943 132,684 143,055 186,561 223,285 178,589 260,409 314,256 223,621
misc. expenses)-CC c) 90,817 123,659 129,405 169,611 205,264 164,939 252,469 302,416 209,971
Page 13
Non-cash Costs a) 73,394 109,301 125,675 109,440 193,440 294,000 86,880 149,760 220,080
(seeds and b) 69,009 96,147 94,983 67,040 156,240 207,200 78,000 123,120 157,920
entrepreneurship) c) 65,626 85,998 71,302 82,440 117,240 121,800 69,672 98,136 99,624
Total Costs (TC) a) 174,824 255,273 296,030 306,501 437,854 499,889 354,189 478,716 741,001
b) 164,952 228,831 238,038 253,601 379,525 385,789 338,409 437,376 381,541
c) 156,443 209,657 200,707 252,051 322,504 286,739 322,141 400,552 309,595
RETURN OVER CASH COSTS
(RCC=GVP-CC) a) (71,662) (56,669) 38,019 (47,061) 205,586 844,111 (169,809) (36,456) 161,579
b) (76,098) (73,149) (4,139) (86,561) 76,715 521,411 (195,409) (119,256) 231,379
c) (81,887) (96,868) (66,893) (124,611) (70,264) 150,061 (223,219) (214,666) (5,221)
RETURN OVER TOTAL COSTS
(RTC=GVP-TC) a) (145,056) (165,970) (87,656) (156,501) 12,146 550,111 (256,689) (186,216) (58,501)
b) (145,107) (169,296) (99,122) (153,601) (79,525) 314,211 (273,409) (242,376) 73,459
c) (147,513) (182,866) (138,195) (207,051) (187,504) 28,261 (292,891) (312,802) (104,845)
© 1991 Nerisa D. Salayao, Rogelio N. Tagarino & Charles G. Kick, III
Page 13
© 1991 Nerisa D. Salayao, Rogelio N. Tagarino & Charles G. Kick, III
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Year 1 Year 2
FINANCING: Month 6 Month 12 Month 6 Month 12
Loan receipts * 137,573
Interest ** 24,763 16,509
Repayment of capital 0 45,858 45,858 45,858
Total Debt Service 24,763 45,858 62,367 45,858
Net Finance Available 112,810 (45,858) (62,367) (45,858)
Outstanding balance 137,573 91,715 45,858 0
* 70% of capital requirement during the investment and first crop period.
** 18% interest per annum on agricultural loans.
References:
© 1991 Nerisa D. Salayao, Rogelio N. Tagarino & Charles G. Kick, III
21
Doty, M. 1986.
Barraca, R.T. Undated.
Seaweed/Seagrass/Mangrove Fishery
Resource Section-BFAR-DA March 1989.
Travel Report..
Liagora sp. x
*Abundant in Sabang, Bulusan.
Source: Seaweed/Seagrass/Mangrove Fishery Resource Section-BFAR-DA
© 1991 Nerisa D. Salayao, Rogelio N. Tagarino & Charles G. Kick, III
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VII. References
Agriscope. 1986. Agribusiness Opportunities. World Media Grove, Inc., Diliman, Quezon City
Alunan, M.M. Seaweed produces rap US move. Manila Bulletin, December 6,1990.
Barraca, T.T. 1988. Farming and Exporting of Eucheuma (Seaweeds) in Indonesia. FMC Marine
Colloids Division. USA.
Barraca, T.T. Undated. Guide to Eucheuma Seaweed Farming for Contract Growers and
Entrepreneurs. FMC Corporation-Marine Colloids Division. Rockland, Maine, USA.
Basa, S.S. 1987. Eucheuma Farming: An Income Generating Project. Bureau of Fisheries and
Aquatic Resources. Quezon City.
Carambas, N. DM. 1987. Seaweed Commodity System Study. Special Problem. UP Los Banos,
College, Laguna.
Doty, M.S. 1986. Estimating Farmer Returns from Producing Gracilaria and Eucheuma on Line
Farms. Monografias Biologicas 4:45-62 Simposio Internacional. Usos y Funciones
Ecologicas de las Algas Marinas Bentonicas. Bernabe Sentelices, editor.
Doty, M.S. 1989. An Unusual Experimental Program in Applied Phycology: On the Socio-
Economic Impact of Seaweed Farming. Applied Phycology Forum. Vol. 6. No. 1.
Mongaya, E. Local seaweeds industry threatened. Manila Standard. April 18, 1990.
Padilla, J. and H. Lampe. 1989.
Rabanal, H.R. and G.C. Trono, Jr. 1983. Seaweeds in Asia: A resource waiting for
development. Infofish Marketing Digest. No. 4/83.
Regional Office for Asia and the Pacific. 1986. Seaweed Culture in the Asia Pacific Region.
FAO-UN. Bangkok.
Seaweed products and markets. 1983. Infofish Marketing Digest No. 4/83.
Seaweed/Seagrass/Mangrove Fishery Resource Section-BFAR-DA. May 1989. Travel Report
for the Project Titled: Biological and Oceanographic Studies of Eastern Sorsogon with
Emphasis on Seaweeds and Associated Invertebrate Resources.
Smith, A. 1986. A Guide to Seamoss Cultivation in the West Indies. Carbbean Conservation
Association.
Smith, I.R. and R.P Smith. 1980. A Fishing Community's Response to Seaweed Farming.
ICLARM Newsletter. Vol. 3 No. 3. ICLARM, Makati, Metro Manila, Philippines.
Smith, I.R. 1987. The Economics of Small-Scale Seaweed Production in the South China Sea
Region. FAO Fisheries Circular no. 806. FAO-UN. Rome.
Tagarino & Kick._____. RTPAP Study, Draft Final Report, 15 January 1991.